Two Corpbank Conservators Charged with Deliberate Mismanagement

Sofia, December 17 (BTA) - The Sofia City Prosecution Office has brought charges of very serious deliberate mismanagement against two conservators of Corporate Commercial Bank (Corpbank), the prosecuting magistracy said on Monday.

Elena Kostadincheva and Stanislav Lyutov are charged with intentional failure to properly manage and protect the property in their care between August 20, 2014 and January 14, 2015, which resulted in detriment of 1,070,383.83 leva to the Bulgarian Deposit Insurance Fund (BDIF).

According to the indictment, the two conservators deliberately ordered the early accounting of nine contracts for individual term deposits with a preferential annual interest rate. As a result, the deposits were transferred for payout to the BDIF. These actions were in breach of the Bank Deposit Guarantee Act.

Corpbank was established in 1994. It was Bulgaria's fourth biggest lender before it suspended all operations on June 21, 2014 after a run by depositors left it illiquid. The court declared the bank bankrupt on April 22, 2015.